Housing Finance Agencies to Receive Treasury Funds
The US Treasury Department is "in discussions" to finalize a program to provide liquidity for state housing finance agencies (HFAs), according to Treasury officials. State HFAs like the New York State Housing Finance Agency originate mortgages for low- and moderate-income borrowers and sell mortgage-related bonds as a method to keep liquidity flowing. Details on the Treasury's program, which are "being ironed out," may arrive as soon as this week, said one source familiar with the discussions. The program is part of an initiative announced in February within the Homeowner Affordability and Stability Plan. The program would be implemented through mortgage giants Freddie Mac (FRE) and Fannie Mae (FNM), according to an initial statement on the program. "The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers," the Treasury said in February. Write to Diana Golobay.